Abercrombie's Sales Growth Expected to Slow -- Earnings Preview

Dow Jones
Nov 25
 

By Connor Hart

 

Abercrombie & Fitch is scheduled to report fiscal third-quarter financial results before the market opens Tuesday. Here is what you need to know.

 

SAME-STORE SALES: Companywide comparable sales, or those from stores and digital channels in operation for at least a year, are expected to rise 4.8%, compared with a 16% climb a year earlier, according to analysts polled by FactSet.

SALES: The retailer is expected to post a top line of $1.28 billion, up from $1.21 billion in the same quarter last year.

ADJUSTED EARNINGS: Wall Street is modeling an adjusted profit of $104.7 million, or $2.17 a share, compared with $132 million, or $2.50 a share, a year ago.

Abercrombie's stock has lost about a third of its value over the past three months and was recently trading hands at $66.17.

 

WHAT TO WATCH:

--Recent channel checks across Abercrombie & Fitch's namesake brand indicate ongoing softness and higher year-over-year promotions, Raymond James analysts said. Checks across the company's Hollister brand, on the other hand, point to continued strength. The analysts model Abercrombie's third-quarter same-store sales below Wall Street's expectations. Hollister is projected to top comparable-sales estimates, the analysts said, though they note that tougher comps in the fourth quarter will likely result in slower growth moving forward.

--Consumers are feeling increasingly stressed out about the economy. Retailers last week noted that lower-income shoppers continued to pull back during the recent quarter, which was especially volatile due to the pause in benefits from the Supplemental Nutrition Assistance Program, or SNAP, and the government shutdown. Companies including Walmart, Amazon.com and T.J. Maxx parent TJX have found success catering to these cautious consumers, providing value, lower prices and convenience. Investors will be looking to see how Abercrombie is assuaging shoppers' economic jitters.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

November 24, 2025 13:35 ET (18:35 GMT)

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